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Nigeria set to establish aircraft leasing firm

Nigeria to Establish Aircraft Leasing Firm to Strengthen Aviation Industry
Nigeria is preparing to launch a national aircraft leasing company aimed at alleviating financial pressures on local airlines, reducing flight cancellations, and lowering ticket prices. The Federal Executive Council (FEC) approved the initiative, which was announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a meeting with the Airline Operators of Nigeria (AON) in Abuja.
Addressing Challenges in Aircraft Acquisition
Minister Keyamo highlighted that the new leasing firm seeks to resolve a persistent obstacle faced by domestic carriers: the difficulty in acquiring aircraft. This challenge has been a significant contributor to frequent flight disruptions and elevated airfares. Emphasizing the government’s role, Keyamo stated, “Since we don’t own a national airline and we don’t subsidise one, our duty as a government is to ensure that we support domestic airline operators to make them stable and make their businesses thrive.” The plan, endorsed by President Bola Tinubu, aims to provide operators with the necessary support to secure aircraft for their operations.
The company will function primarily as a private entity, with the government maintaining only a minimal equity stake. Keyamo explained that while the government will offer strategic backing, nearly 95 to 99 percent of investments will come from private sources, including development banks across Africa and private investors both within Nigeria and internationally. The government’s involvement will be limited to providing a sovereign guarantee to ensure the safety and repossession of leased aircraft.
International Support and Market Context
The initiative has garnered substantial international backing. The African Development Bank (AfDB) has pledged a $7 billion package to support its integrated African aviation programme, with Nigeria selected as a pilot country. In recognition of his role, Keyamo has been appointed as an ambassador for the programme by the AfDB.
Nigeria’s entry into the aircraft leasing market occurs amid intense competition and industry challenges. Established global firms such as TrueNoord, which recently acquired a majority stake from Arcus Infrastructure Partners, dominate the sector. Industry analysts have expressed reservations about the ability of a new Nigerian leasing company to compete on the international stage, particularly as the sector contends with supply chain disruptions and a surge in commercial aircraft production. Competitors are expected to respond with strategic partnerships or acquisitions, as demonstrated by recent moves involving Airbus and TrueNoord.
Despite these challenges, Nigeria’s aviation sector is showing promising growth. The country is advancing plans to establish an Airbus aviation hub and accelerate deliveries of Apache helicopters. These developments are anticipated to enhance local aviation infrastructure and activity, indirectly supporting the new leasing firm’s prospects.
Industry Response and Outlook
Representing the AON, George Uriesi, Managing Director of Ibom Air, welcomed the government’s initiative, underscoring the financial burden of aircraft acquisition. He remarked, “Aircraft is the most expensive thing any airline can buy and for people like us who have ordered for brand new airplanes, these are multi-million dollar equipment.”
The establishment of the aircraft leasing company is expected to provide critical relief to Nigeria’s airline operators. By facilitating easier access to aircraft, the initiative has the potential to transform the country’s aviation landscape, making air travel more accessible and affordable for Nigerians.

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